The price of a condominium is 

​$80 comma 00080,000. 

The bank requires a​ 5% down payment and one point at the time of closing. The cost of the condominium is financed with a​ 30-year fixed-rate mortgage at 

77​%. 

Use the following formula to determine the regular payment amount. Complete parts​ (a) through​ (e) below.

PMT equals StartStartFraction Upper P left parenthesis StartFraction r Over n EndFraction right parenthesis OverOver left bracket 1 minus left parenthesis 1 plus StartFraction r Over n EndFraction right parenthesis Superscript negative nt right bracket EndEndFractionPMT=Prn1−1+rn−nt

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Part 1

**a.** Find the required down payment.

To calculate the required down payment for the condominium, we can use the following steps:

### **Given:**
- Price of the condominium $ P = \$80,000 $
- Down payment percentage = 5%

### **Step 1: Calculate the Down Payment**

The down payment is calculated as a percentage of the total price of the condominium. 

\[
\text{Down Payment} = \text{Price of the Condominium} \times \text{Down Payment Percentage}
\]

Substitute the values:

\[
\text{Down Payment} = \$80,000 \times 0.05
\]

\[
\text{Down Payment} = \$4,000
\]

### **Answer:**
The required down payment is **$4,000**.

Would you like help with the remaining parts of the problem?

### Related Questions:
1. How does the down payment affect the mortgage principal?
2. What are the benefits of making a larger down payment?
3. How do different down payment percentages affect mortgage approval?
4. What happens if the down payment is less than 5%?
5. Can a down payment be made using a gift from family or friends?

### Tip:
If possible, consider increasing your down payment to reduce the loan amount and potentially lower your monthly payments.

Learn how to calculate the required down payment for a $80,000 condominium. This problem involves mortgage calculations, including determining the down payment percentage and its impact on financing. Suitable for adults and professionals.

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